XML 35 R17.htm IDEA: XBRL DOCUMENT v3.8.0.1
Hedging Derivative Financial Instruments
 12 Months Ended
Dec. 31, 2017
Text block1 [abstract]  
Hedging Derivative Financial Instruments
11. HEDGING DERIVATIVE FINANCIAL INSTRUMENTS

 

         December 31,    
2016		          December 31,    
2017		  
     NT$      NT$  
     (In Millions)      (In Millions)  

Financial assets - current

      

Fair value hedges

      

Interest rate futures contracts

    $ 5.6      $ 27.0  

Cash flow hedges

      

Forward exchange contracts

      —        7.4  
  

 

 

     

 

 

  
   $ 5.6      $ 34.4  
  

 

 

     

 

 

  

Financial liabilities- current

      

Cash flow hedges

      

Forward exchange contracts

    $ —      $ 15.6  
  

 

 

     

 

 

  

The Company entered into interest rate futures contracts, which are used to hedge against the price risk caused by changes in interest rates in the Company’s investments in fixed income securities.

The outstanding interest rate futures contracts consisted of the following:

 

Maturity Period   

Contract Amount

(US$ in Millions)

  
December 31, 2016   

March 2017

    US$ 53.6  
December 31, 2017   

March 2018

    US$ 169.4  

The Company entered into forward exchange contracts to partially hedge foreign exchange rate risks associated with certain highly probable forecast transactions, such as capital expenditures. These contracts have maturities of 12 months or less.

Outstanding forward exchange contracts consisted of the following:

 

          Contract Amount  
     Maturity Date    (In Millions)  

December 31, 2017

      
Sell NT$/Buy EUR    February 2018 to May 2018      NT$2,649.1/EUR75.0